Oil & Gas Leasehold Interests

For assets of this nature, we have processes that have been modified to:

• Acknowledge the typical complexity of purchase agreements by using a "Nominee Letter", instead of an assignment of the purchase agreement, which enable the EAT to hold title to the asset during the exchange period.
• Acknowledge the fundamental differences required in the arrangement giving the Exchangor access to the assets for extraction and other operational functions by entering into an Operations and Services agreement instead of a lease. This approach also has the advantage of being customizable, in most cases, so that the Exchangor can receive benefits from both depletion and other intangible drilling costs while title to the asset is held by the EAT.
• Provide the highest level of asset security in the industry which, for assets with values typical of this nature, are absolutely required and necessary to satisfy risk mitigation requirements. Let us know if the details of these ultimate security devices are of interest.